Follow report According to the latest report from Chainalysis, there are currently around $ 10 billion worth of cryptocurrencies in illegal addresses through criminal activities such as fraud, ransomware, and ponzi.
Illegal activity now accounts for 0.15% of the total crypto trading volume of $ 15.8 trillion last year, up 550% from last year. However, the numbers could still increase.
Chainalysis reported that 0.34% of crypto transactions in 2020 were related to illegal activity, which has since increased to 0.62%. In addition to PlusToken’s multi-billion dollar Ponzi program from 2019, the rate of crypto-related crime is falling.
DeFi-related crime is increasing
With transaction volume in the DeFi sector up 912% last year, the report highlights a new area where crime is thriving. While in 2020 cryptocurrencies worth 162 million
“The rise in DeFi-related crime is an example of how criminals often take advantage of new technology. As DeFi started growing this year, we saw a huge surge in the protocols used for money laundering as well as protocols that are hacked at, “said Kim Grauer, Research by Chainalysis team leader.
Chainalysis researchers digged deeper into the metrics and found that cyber criminals generated 82% more revenue from scams and collected $ 7.8 billion in crypto from victims in 2021. Of that $ 7.8 billion, Chainalysis found that $ 2.8 billion came from the rug pull – where developers create crypto projects that appear legitimate before the theft.
The $ 2.8 billion does not even take into account the user losses associated with the sharp drop in value of the counterfeit DeFi tokens, and only counts the investor financings that have already been made. Almost all of the $ 2.8 billion stolen in 2021 came from Thodex, a centralized exchange that cheats with its CEO and prevents users from withdrawing and disappearing. Chainalysis has pursued several other DeFi projects that ended up pulling the carpet.
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